BoG pledges flexible exchange rate to boost Ghana’s financial sector
By Praisebell Rosemond Larbi
The Bank of Ghana (BoG) says it is fully committed to retaining a flexible exchange rate regime supported by strong economic fundamentals and policy credibility.
This, according to Dr. Johnson Asiamah, Governor of the Bank of Ghana, is crucial for fostering financial stability and strengthening the country’s financial sector.
Dr. Asiamah made these comments during a high-profile thought leadership event hosted by the Ghana Association of Banks (GAB) in collaboration with Absa Bank, Ghana. The event was themed “Banking the Last Mile: An Industry-Led Strategy for Accelerating Digital Finance” and was held in Accra. The platform brought together financial institutions, regulators, policy experts, and financial technology innovators to collectively explore mechanisms for extending financial services to underserved and vulnerable communities.
“The Bank of Ghana is not pursuing a rigid exchange rate target or a predetermined range for the cedi. None of those. We remain committed to a flexible exchange rate regime, a framework anchored in fundamentals, responsive to shocks, and supported by credible policy tools to enable financial stability and foster financial innovation,” Dr. Asiamah explained in his address.
He assured stakeholders that the central bank stands vigilant and is fully prepared to respond in a measured and decisive manner to preserve orderly market conditions and protect financial stability, all in service of strengthening the financial sector’s role in delivering financial empowerment across the country.
Dr. Asiamah further described Fitch’s recent upward revision of Ghana’s sovereign rating as a strong affirmation of the progress made by the country in strengthening its financial institutions and policy framework.
In his welcome address, Edward Botchway, Managing Director of Absa Bank, Ghana, stressed the necessity for financial institutions to implement strong controls and regulations to enable greater confidence in their digital operations.
“We need to self-regulate; we need to manage and control this process effectively in the interest of the customer,” Mr. Botchway said.
He called for greater financial education and vigilance by both regulators and consumers to avoid falling victim to unreliable financial players in the market.
“It’s not enough for regulators to act; the customer must also be vigilant and empowered to make decisions in their own financial interest,”Mr. Botchway added.
